Bumping .. just came across the same situation.

At acquisition the seller would be in first position on the property - you're then proposing to have him bumped down to second position by bringing in a construction loan.

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For example, with a strong DSCR and high credit your leverage can be greatly extended and your interest rate lowered to a point where it makes your offer price ability bump lift and yet still be profitable.

Bumping it to a 3-year could potentially save you ~0.25% or so. 

Bump!

My plan is to immediately move the three lower units to $1400, then in 6mos move to $1450, then a year from now, bump them to $1500 (leaving the one at $1550).

I submit that the tenant who runs out on a contract they agreed to because of a minor bump in the road of life was not a good tenant to begin with - they would have found some small hill on which to blow up the relationship eventually, people like that always do. 

Bump.

This can save on taxes by avoiding a bump up into a higher tax bracket if the seller had a huge gain."